From humble beginnings as an online book retailer, few companies have had more of an effect on the retail sector — indeed, the daily lives of all of us — than Amazon (Nasdaq: AMZN). Today, it’s a $438 billion behemoth, selling just about any product imaginable. That’s the cover story. But Amazon is much more than an online retailer. #-ad_banner-#We’re talking about a company with the analytical capabilities to know what its customers likely want even before they begin searching its website. We’re talking about warehouses strategically placed across the country, carefully stocked with inventory based on its vast databases… Read More

From humble beginnings as an online book retailer, few companies have had more of an effect on the retail sector — indeed, the daily lives of all of us — than Amazon (Nasdaq: AMZN). Today, it’s a $438 billion behemoth, selling just about any product imaginable. That’s the cover story. But Amazon is much more than an online retailer. #-ad_banner-#We’re talking about a company with the analytical capabilities to know what its customers likely want even before they begin searching its website. We’re talking about warehouses strategically placed across the country, carefully stocked with inventory based on its vast databases — with workers increasingly replaced by more efficient robots — to ensure rapid fulfilment. (Soon, drones may replace delivery drivers.) Its innovations in logistics alone are enough to fill a doctoral thesis. And that’s just half the story. Amazon is also a game-changer in the media business… The advertising business… The cloud business… The list goes on and on. It’s for this reason I call Amazon one of the “World’s Greatest Businesses.” There’s just one problem. For years, Amazon has defied traditional investing logic. Think about it… It’s one of the few “internet” companies that survived the dot-com crash relatively… Read More

There’s a growing concern percolating beneath the surface of the stock market. And, no, I’m not talking about a looming correction or anything like that. It’s a problem that’s making it even tougher for individual investors to find market-beating stocks. It’s a problem that will require investors to have a system, like Maximum Profit, to have any hope… This predicament became even more glaring on April 19 when the world’s largest asset manager, BlackRock (NYSE: BLK) reported quarterly earnings. #-ad_banner-#BlackRock’s report included an astonishing achievement, even by its own standards. The company’s assets under management (AUM) reached… Read More

There’s a growing concern percolating beneath the surface of the stock market. And, no, I’m not talking about a looming correction or anything like that. It’s a problem that’s making it even tougher for individual investors to find market-beating stocks. It’s a problem that will require investors to have a system, like Maximum Profit, to have any hope… This predicament became even more glaring on April 19 when the world’s largest asset manager, BlackRock (NYSE: BLK) reported quarterly earnings. #-ad_banner-#BlackRock’s report included an astonishing achievement, even by its own standards. The company’s assets under management (AUM) reached an all-time record of $5.4 trillion. That’s bigger than JPMorgan Chase (NYSE: JPM), Goldman Sachs (NYSE: GS) and Bank of America (NYSE: BAC) combined. They accomplished this impressive feat, in large part, by leading a trend that’s radically changing the investment world. You see, fewer and fewer investors are picking individual stocks. Instead, they are opting for index funds, and BlackRock has become a leader in low-cost index funds and exchange-traded funds (ETFs), as opposed to actively managed funds. Now, index funds can play a vital role in portfolio management, and I like the fact that they allow investors easy… Read More

The financial sector was on fire in 2016. Immense annual gains of 50%, 60%, and greater were pocketed by investors who caught the trend. Don’t worry, I’m not talking about speculative fintech or other risky high-tech financial names. Believe it or not, the outsized gains were made in solid, multi- billion dollar companies like JP Morgan (NYSE: JPM) and Bank of America (NYSE: BAC). Hopefully, your portfolio captured some or all of this historic upside. But It’s Not Too Late If you missed riding the uptrend higher, or simply want to have a chance to pocket additional gains, it’s… Read More

The financial sector was on fire in 2016. Immense annual gains of 50%, 60%, and greater were pocketed by investors who caught the trend. Don’t worry, I’m not talking about speculative fintech or other risky high-tech financial names. Believe it or not, the outsized gains were made in solid, multi- billion dollar companies like JP Morgan (NYSE: JPM) and Bank of America (NYSE: BAC). Hopefully, your portfolio captured some or all of this historic upside. But It’s Not Too Late If you missed riding the uptrend higher, or simply want to have a chance to pocket additional gains, it’s not too late. I have identified five solid financial stocks that still have tremendous upside potential and pay hefty dividends. #-ad_banner-#Amazingly, these stocks trade in a market that has never had a financial calamity since the 19th century. This industry remained stable during both the Great Depression and the global banking crisis of 2008. This market, the Canadian banking industry, never experienced a financial crisis due to a myriad of reasons that are beyond the scope of this article. Suffice to say; the Canadian banking system is widely considered to be a bastion of stability. In comparison, the United States… Read More

The car business is in trouble. But it could actually help one of my holdings in Top Stock Advisor. Let me explain… On April 3, Autodata released March sales numbers and they revealed that vehicle sales fell to the lowest level in more than two years. Auto sales have risen every year since the financial crisis and hit a record 17.6 million vehicles last year. But since the turn of the New Year sales have begun to fade. And the situation is likely only to get worse. #-ad_banner-#You see, used-car prices are beginning to fall. According to the National Automobile… Read More

The car business is in trouble. But it could actually help one of my holdings in Top Stock Advisor. Let me explain… On April 3, Autodata released March sales numbers and they revealed that vehicle sales fell to the lowest level in more than two years. Auto sales have risen every year since the financial crisis and hit a record 17.6 million vehicles last year. But since the turn of the New Year sales have begun to fade. And the situation is likely only to get worse. #-ad_banner-#You see, used-car prices are beginning to fall. According to the National Automobile Dealers Association, used car prices fell roughly 4% in February and are likely to continue heading that direction as a plethora of previously leased vehicles hit the market. The weakness in used-car prices puts pressure on new car sales. Think about it this way. If the price of a used car isn’t that much different from a brand spanking new one… why not get a new vehicle? But as used car prices fall, then the disparity in price makes it easier for consumers to choose used. But the real problem looming in the auto industry — one hardly anyone is… Read More

Is it time to invest in energy stocks? Oil prices have been volatile, and there is tremendous excitement in the energy space. The question has always been will oil continue to climb higher, or will the price momentum fade? Maybe the commodity will crash, or maybe it will just keep moving up. No one knows what will happen next, and with many energy stocks are dependent on oil prices, investors are unsure of where they can safely buy in the space. Believe it or not, not all oil company stocks are dependent on the price of crude. I have identified… Read More

Is it time to invest in energy stocks? Oil prices have been volatile, and there is tremendous excitement in the energy space. The question has always been will oil continue to climb higher, or will the price momentum fade? Maybe the commodity will crash, or maybe it will just keep moving up. No one knows what will happen next, and with many energy stocks are dependent on oil prices, investors are unsure of where they can safely buy in the space. Believe it or not, not all oil company stocks are dependent on the price of crude. I have identified five stocks that should continue to climb higher regardless of what happens to oil prices. A History Of Volatility Oil is among the most volatile commodities on earth. Just three years ago, it was trading for over $100 per barrel. Next time it hit the headlines, it had plunged to around $30 per barrel in early 2016. Prices have since climbed back up to around $53.00 per barrel. The volatility is custom made for active futures traders. This hyperactive subset of the investor population can change from long to short instantaneously and profit no matter which way the commodity… Read More

If I had to name the biggest game-changing trend of the past decade — a trend that has disturbed the most companies, made the biggest organizational impact, changed the way businesses are structured, and impacted the most lives — it would be cloud computing. Nothing short of a paradigm change, the advent of the cloud has truly transformed the way most technology companies do business. Even consumer companies have been significantly affected by the shift. #-ad_banner-#The premise behind the cloud computing is simple: When technology — from simple applications to complete data centers — is delivered over the internet, it… Read More

If I had to name the biggest game-changing trend of the past decade — a trend that has disturbed the most companies, made the biggest organizational impact, changed the way businesses are structured, and impacted the most lives — it would be cloud computing. Nothing short of a paradigm change, the advent of the cloud has truly transformed the way most technology companies do business. Even consumer companies have been significantly affected by the shift. #-ad_banner-#The premise behind the cloud computing is simple: When technology — from simple applications to complete data centers — is delivered over the internet, it can be delivered as-needed, or on-demand. This on-demand business is now known as the cloud. The on-demand feature makes everything easier. Companies have found that signing up for on-demand services is the easiest way to meet their future needs; the cloud-based model can easily get you more (or less), depending on how those needs change. It also turns out that consuming technology over the internet is less expensive than doing it the traditional way: Basically, you pay for what you use — no more, no less. It requires much less hardware, too: All the hard work is done somewhere off-site… Read More

I had a manager at a firm I used work with. This guy had been in the investment racket for what seems like forever. He was always available to give young brokers advice on stock selection. He would refer to stocks that carried too much risk as “chocolate covered hand grenades.” They looked enticing but sooner or later were guaranteed to blow up in your face. #-ad_banner-#Coming of age in the business during the Tech Bubble of the mid-1990s, I learned a lot about ridiculous valuations. Stock prices and investor expectations can get a little over their skis if the… Read More

I had a manager at a firm I used work with. This guy had been in the investment racket for what seems like forever. He was always available to give young brokers advice on stock selection. He would refer to stocks that carried too much risk as “chocolate covered hand grenades.” They looked enticing but sooner or later were guaranteed to blow up in your face. #-ad_banner-#Coming of age in the business during the Tech Bubble of the mid-1990s, I learned a lot about ridiculous valuations. Stock prices and investor expectations can get a little over their skis if the right conditions are present in the market. The S&P 500 index has delivered around a 5.5% return year-to-date, sparking the pundits to wring their hands and wonder aloud if the market is overvalued. The S&P 500 is currently trading at about 18 times expected earnings. If you’re a value-oriented investor, then that may seem a little expensive, especially if forward P/E is one of your primary valuation metrics. Otherwise, there’s not really cause for widespread concern about the market. However, I’ve identified three widely traded stocks that I would categorize as chocolate covered hand grenades. At their current levels, I’m… Read More

Prior to 1913, cashing a check in the United States was a hit-or-miss proposition. Many larger banks refused to clear checks from smaller, less well-known banks for fear that the originating bank might not be solvent. This was especially true in times of economic distress, such as the financial panic of 1907. #-ad_banner-#The refusal of some banks to cash the checks of other banks was one of the reasons the Federal Reserve was established in 1913. But it wasn’t until 1918 that Congress ordered the Fed to create a nationwide check-clearing system. For this, the Federal Reserve Banks created a… Read More

Prior to 1913, cashing a check in the United States was a hit-or-miss proposition. Many larger banks refused to clear checks from smaller, less well-known banks for fear that the originating bank might not be solvent. This was especially true in times of economic distress, such as the financial panic of 1907. #-ad_banner-#The refusal of some banks to cash the checks of other banks was one of the reasons the Federal Reserve was established in 1913. But it wasn’t until 1918 that Congress ordered the Fed to create a nationwide check-clearing system. For this, the Federal Reserve Banks created a telegraph network to transfer funds between member banks. Many Americans would be surprised to know that the check-clearing system created in 1918 is still in use today. It’s called the Federal Reserve Wire Network (Fedwire, for short). And it’s truly massive. Fedwire processed more than $835 trillion worth of transactions in 2015. In 2016, the value of the transactions dipped by 8.1% to $767 trillion due to a slow economy. Even so, that’s still more money changing hands every nine days than the entire GDP of the United States. But Change Is Coming Fedwire’s telegraph lines lasted into the… Read More

No matter how much we think we know what to expect, there are always surprises. As an investor, I know this means I have to look at all the information available, rather than assume I know what the data says. That’s what led me to find an investment opportunity in an unexpected place: retail. This is a sector filled with bad news. According to CNBC, “Retail bankruptcies march toward [a] post-recession high.” So far this year, we have seen nine major retailers file bankruptcy, including Limited Stores and the parent of Radio Shack, which already went bankrupt once before. Analysts… Read More

No matter how much we think we know what to expect, there are always surprises. As an investor, I know this means I have to look at all the information available, rather than assume I know what the data says. That’s what led me to find an investment opportunity in an unexpected place: retail. This is a sector filled with bad news. According to CNBC, “Retail bankruptcies march toward [a] post-recession high.” So far this year, we have seen nine major retailers file bankruptcy, including Limited Stores and the parent of Radio Shack, which already went bankrupt once before. Analysts believe other will follow. Moody’s Investors Service says that 19 retailers are distressed and may not survive the year. Their list includes 99 Cents Stores, Payless, Claire’s, David’s Bridal and, of course, Sears. Some investors may want to avoid the entire sector, but there must be some winners hidden among all the struggling stores because retailing can’t disappear completely. While looking over relative strength screens of the market, I was surprised to see one company doing well in one of the more beaten-down sectors. Best Buy (NYSE: BBY) has been a market leader for the past six months, the only… Read More

Alcoa (NYSE: AA) kicks off first-quarter earnings season on April 24. Analysts surveyed by FactSet Research expect S&P 500 companies to report 9.1% annual earnings growth. That’s down from the 12.5% growth expected when the first quarter began, but would still represent the strongest move in five years. Sales growth, expected at 7.2% for the market index, is also expected to post the strongest year-over-year growth since 2011. #-ad_banner-#On top of strong earnings growth, U.S. companies get a near-term boost from recent weakness in the dollar as they translate foreign earnings. Loosening regulations could also lift specific sectors. Against this… Read More

Alcoa (NYSE: AA) kicks off first-quarter earnings season on April 24. Analysts surveyed by FactSet Research expect S&P 500 companies to report 9.1% annual earnings growth. That’s down from the 12.5% growth expected when the first quarter began, but would still represent the strongest move in five years. Sales growth, expected at 7.2% for the market index, is also expected to post the strongest year-over-year growth since 2011. #-ad_banner-#On top of strong earnings growth, U.S. companies get a near-term boost from recent weakness in the dollar as they translate foreign earnings. Loosening regulations could also lift specific sectors. Against this strength in fundamentals we find a market that has stalled near record highs and investors hesitant to buy in at lofty valuations. After jumping 3.9% in February, the S&P 500 has flatlined as investors wait for earnings confirmation to push higher. The next few weeks could give us that confirmation — or it could bring the long overdue correction for which the bears have been waiting. I’ve found three sectors and three leaders in each with the potential to surprise to the upside, providing investors with a reason to send shares higher for the rest of the year. Three Value… Read More